By: Sara Kovač /Nova24tv
Slovenia’s gross domestic product (GDP) rose to 9.8 percent on an annual level in the first quarter of this year. The European Commission is forecasting for Slovenia the sixth fastest GDP growth (3.7%) among EU countries this year.
As the third Janša’s government concludes its term, the results of its work to help the economy have come to light. The volume of GDP for the first quarter increased to an incredible 9.8 percent, which is incomparable with current data.
But uncertain times are coming. Both globally and nationally. The new government is announcing changes to the personal income tax law, higher taxes and lower wages, and the entire economy is in disfavour. Representatives of employers assessed that the measures were harmful or completely impossible. The parties Gibanje Svoboda, Levica, and SD would, among other things, raise the minimum wage, shorten working hours, and progressively tax property. Some health care workers are also outraged, as the future government would eliminate doctors’ afternoon work.
- Domestic consumption was 16.6 percent higher than in the first quarter of last year. Household consumption, which increased by 20 percent, contributed the most to this figure. Statistics also recorded growth in fixed capital formation (by 12.7 percent) and inventories. The latter contributed 2.3 percentage points to GDP growth.
- For the fourth quarter in a row, imports increased more than exports – imports by 15.7 percent and exports by 7.7 percent. Due to higher growth in imports compared to exports and unfavourable terms of trade, the contribution of the foreign trade balance to GDP growth was again negative (by 5.6 percentage points).
- Value added increased by 9.3 percent on an annual level in the first quarter. Combined activities of trade, transport and catering contributed the most to this growth, increasing by 21.8 percent.
- Value added in construction increased by 16.7 percent. Growth in services also remained high, while in manufacturing it slowed down in the last three quarters but remained positive.
- Net taxes also made a significant contribution to economic growth in the first quarter, rising by 13.2 percent compared to the same quarter last year.
- Employment continued to grow, with 1,073,000 people employed in the first quarter, or about 34,000 or 3.3 percent more than in the first quarter of last year. Most new jobs were in catering, manufacturing, and construction.